Is It Time for a New ERP System? A Few Pointers to Get You Started
Your ERP System plays a vital role in your business. Some believe it’s a “can’t live without it” asset. If your ERP isn’t performing the way it should, every aspect of your business will feel it, from product planning, to purchasing, to supply chain strategy. When making such a sizable upgrade, it is hard to know when to pull the trigger on a new system. There are many people trying to sell you different solutions. Acumatica has put together some tips along with a free guide, Should I move my ERP to the cloud?, to help you decide if the time is right for your company.
Is it time to replace your ERP system?
What’s right for one company may not be right for another. There is no one-size-fits-all solution. It’s up to you knowing your company and knowing your processes. We have listed a few warning signs that your current ERP system might be past its prime, or nearing its expiration date.
- It does not support the needs of the business (lacks functionality, is hard to use, response time is too slow)
- Operating costs are too high
- You rely on spreadsheets to get things done
- Executives get little useful insight from the system (lack of dashboards, self-service BI, or they are difficult to use)
It may be time to upgrade if you are looking at these points and thinking, “OK, several of these hit way too close to home. My ERP does lack functionality, our operating costs are through the roof, and we have so many Excel spreadsheets we can’t keep track of them all.”
What Can You Accomplish With a New ERP System?
- Increase sales and improve customer service
- Improve cash management and reduce outstanding receivables
- Reduce purchasing and production costs; increase efficiency
- Improve inventory turnover
- Better utilize people, equipment and materials
Is It Time to Move to the Cloud?
You have decided it’s time to replace the old, worn out ERP system with something new and fresh. The next big question to ask is: Is a cloud-based ERP system right for you?
Cloud computing is part of everyday life. From Google Drive to Dropbox, from SalesForce to AWS, cloud computing isn’t just for personal computing any longer. There are many questions that may be going through your mind. How do you know if an ERP fully hosted in the cloud is right for you? Why should you forgo the traditional on-premises ERP system for a cloud-based approach?
Here are a few pointers from Acumatica:
- Cloud computing is a deployment option, meaning it is a technology decision that may have a profound effect on your IT department, but with the goal of not directly impacting the users of the system. When done right, the system being deployed in the cloud is “invisible” to the system users. Your users shouldn’t even know that it’s there. The ideal piece of technology is one that users are largely unaware of.
- When selecting an ERP system, it is important to choose the software that’s right for your company. Then, and only then, consider deployment and infrastructure options. Many ERP solutions are available in a variety of deployments, including cloud and on-premises, but some are only available one way or the other. Making the deployment decision first limits your choice of software, when it should be the other way around.